Glossary
Cold Wallet
A hardware wallet that keeps private keys offline, never touching the internet.
A cold wallet keeps your private keys on a device that never touches the internet. Ledger and Trezor are the common ones. You sign transactions by physically confirming them on the device.
Cold storage is for savings, not daily use. The point is that malware on your computer cannot reach a key that is not there. The trade-off is convenience, and one real risk: losing the device without a backup means losing the funds.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.